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This study aims to examine the critical role of types of coopetition (upstream/downstream), market structure (concentrated/competitive) and innovation (low vs high degree of innovation) that can affect the way consumers perceive the resulting price (un)fairness of new offerings.

Three between-subjects experiments involving different participant populations and product categories were conducted to test the research hypotheses.

The valence of the effect of types of coopetition (upstream/downstream) on price fairness is conditional on the market structure and the degree of innovation associated with the new product offering. Downstream (as opposed to upstream) coopetition is much more detrimental to perceptions of price fairness in a concentrated market than in a competitive and fragmented market. However, within a competitive market, downstream coopetition may lead to greater price fairness perception than upstream coopetition when the new product offering is highly innovative.

The current study uses lab experiments with fictitious scenarios and focuses on two moderating variables: market structure and innovation perceptions. Future research may use field experiments and explore additional moderating variables that may annihilate the negative effect of downstream coopetition on price fairness perception, especially in a concentrated market.

In concentrated markets, firms should opt for upstream rather than downstream coopetition to limit the negative effect the announcement of coopetition has on price fairness evaluation. However, within a competitive market, when the new product offering resulting from coopetition is associated with a high perceived degree of innovation, firms should opt for downstream rather than upstream coopetition because of its positive impact on price fairness evaluation.

To the best of authors’ knowledge, this study is the first to demonstrate that new product development from coopetition has important implications for the perception of price fairness, leading to positive or negative effects depending on market structure and the degree of innovation of the new product offering. It then explores the conditions under which types of coopetition (upstream/downstream) might backfire.

The purpose of this paper is to explore consumers' perceptions of price unfairness in services, what are its antecedents and when it is important for the consumer. Thus, the central question of this research is whether consumers care about how much profit the service company is making and whether there are significant differences to physical goods.

Building on justice and equity theory, a causal model is developed – which analyses the main antecedents (seller profits vs customer value), moderators and consequences of perceptions of price unfairness. Structural equation modelling has been applied to test the proposed model.

The lack of specific tools to measure perceptions of price fairness required the development of a multi‐item scale to capture the complexity of the evaluation. This instrument has been tested for reliability and validity in a variety of settings, with excellent results, and can be appropriate when using the survey as a data collection method. Also, the authors have argued that there should be significant differences due to the nature of the product – service industries vs physical goods– as well as due to the number of available alternatives that the buyer has in the market.

The validity of a new model is tested by means of an empirical research conducted in four different settings, two different services (automobile repair services and music concerts) and their related physical goods (automobiles and music CDs). A multi‐item scale is also developed to capture the complexity of price fairness perceptions. Finally, significant differences between contexts, as well as due to the number of available alternatives present in the marketplace are examined.

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction judgments. Further, it seeks to examine specific factors that influence fairness perceptions including price perception and consumer vulnerability.

The study is conducted in the context of automobile purchases in major German car dealerships. Based on a theoretical conceptualization of the constructs and an empirical pretest, 246 car buyers were surveyed and their fairness perceptions and satisfaction judgments with the car buying process measured.

The research shows that price perceptions directly influence satisfaction judgments as well as indirectly through perceptions of price fairness. Results also indicated that consumers' vulnerability, which is induced by a perceived demand‐supply relationship and the urgency of need from the consumers' side, had a negative effect on perceived price offer fairness.

The research demonstrated the influence of perceived price fairness on satisfaction judgments empirically. The study was conducted in the context of car purchases and the generalizability of the model should be further tested.

The effect of consumer vulnerability implies that sellers should not only avoid exploiting their customers but should also anticipate consumers' potential feelings of being exploited. Being sensitive to the buyers’ psychological state and assuring buyers of fair treatment will enhance perceptions of price fairness without changing the price offer.

Both the direct and indirect effects of price perception on satisfaction judgment were examined in the paper. Specifically, the influences of consumer vulnerability and price procedure fairness on satisfaction judgments are new and contribute to the dual‐entitlement principle and our existing knowledge in price fairness.

This research involves a review of the principal aspects of the concept of perceived price fairness in consumer purchasing behaviour.

The research reviews the principal aspects of perceived price fairness analysed in the literature. First, it tackles the dimensions of the concept of fairness before examining the dual entitlement principle, from which the idea of reference prices and the term fair price derive.

The research establishes research ideas for further research into this important topic, which is not currently the subject of much research.

The principal limitation of the research is that it only focuses on the consumer, without analysing the vendor's point of view in pricing. Additionally, it is limited to considering the effects of perceived unfairness on satisfaction. In future research it will be important to include aspects such as loyalty or confidence in the decision making process.

The research offers a thorough overview of the concept of perceived price fairness, proposing several future research areas that are better adjusted to the real‐world functioning of this important concept and should lead to improved understanding.

El objetivo de este trabajo es hacer una revisión de los principales aspectos relacionados con la percepción de justicia de precios en el comportamiento de compra del consumidor.

Este trabajo revisa los principales aspectos relacionados con la percepción de justicia de precios analizados en la literatura. Así, en primer lugar se abordan las distintas dimensiones que componen el concepto de justicia, y en segunda instancia, el denominado principio de doble derecho que introduce el precio de referencia y da lugar al término de precio justo.

Este trabajo plantea líneas de investigación futuras para profundizar en un tema tan importante, pero poco analizado en la actualidad.

La principal limitación de este trabajo es que se centra solo en la perspectiva del consumidor sin analizar el punto de vista del vendedor cuando fija los precios. Además, se ha considerado únicamente los efectos que la percepción de injusticia tiene sobre la satisfacción, siendo interesante incluir elementos como la lealtad o la confianza en la decisión.

Este trabajo aporta una visión integrada del concepto de percepción de justicia de precios, planteando una serie de líneas de investigación que pueden permitir un conocimiento mejor y más adaptado a la realidad de un concepto tan relevante.

To analyze the role of price fairness perceptions as a construct underlying individuals' transactions.

The paper formulates and empirically tests the hypothesis that price fairness perceptions endogenously determine consumers' expenditures decisions. Economic transactions are viewed as an allocation choice problem with fairness perceptions being an endogenous variable determining problem outcome. A treatment effects model is utilized, allowing for the analysis of the effects that price fairness perceptions exercise upon both the consumers' decision to realize a transaction as well as upon their consequent level of spending.

Consumers do patronize stores and one important variable determining their level of spending is their perceptions of fairness underlying the transaction with a specific provider.

The small usable questionnaire sample may be considered as a limitation. However, the very satisfactory fit of the estimated model allows for the results to be a comparison basis with future findings.

Analysis of price fairness perceptions provides new insights regarding consumer behavior, enhancing the analytical validity of typical household demand models.

Analysis allows for price fairness perceptions to enter a consumer's expenditures equation usually expressed in terms of socio‐economic indicators.

This study aims to adopt illusion of control and lateral consumer relationship in order to investigate their effects on price fairness in online auction and group buying context. These two variables have been known to have strong influences in fairness perception on consumers' decision‐making processes and outcomes.

The authors draw their conceptual foundations from previous studies, supplement this from the electronic commerce literature, and test the model through laboratory experiments.

The study demonstrates that consumers' perception on illusion control in price determination and advantageous lateral consumer relationship significantly affect price fairness perception in both the online auction and group buying environments.

The findings are expected to provide researchers with useful insights to conduct future studies on uncovering the nomological networks associated with price fairness perception.

The findings are expected to help managers develop better pricing strategies and design effective dynamic pricing mechanisms.

The paper provides the first integrated perspective on the human decision processes in the dynamic pricing environment in electronic markets.

This study examines the influence of service quality dimensions (food quality, physical environment quality and employee service quality) and brand image of fast-food restaurants on price fairness and its consequence on customer retention.

This survey collected 331 responses using the public intercept method. Data analysis involved performing confirmatory factor analysis (CFA) on the measurement model, followed by structural equation modeling. Moderation analysis was performed using SPSS (model1 in process macro), while mediation was performed using model 4 in process macro.

Empirical results of this study revealed the positive effect of restaurant service quality dimensions on price fairness and price fairness on customer retention. It also revealed that brand image strengthened the restaurant service-quality/price fairness interrelationship, and that customer satisfaction partially mediated the price fairness/customer retention interrelationship.

Findings of this study are useful to marketers and fast-food restaurateurs in establishing the right combination of service quality dimensions and brand image that increase perceptions of price fairness and increase customer satisfaction and retention.

This study contributes to advancing the theoretical foundations of customers' perceived price fairness and retention research, specifically in the understudied fast-food sector of emerging economies. It extends the application of the equity theory to expose the direct and indirect influences on customer perceived price fairness and customer retention. The findings provide a better understanding of price fairness perceptions.

Pricing is always a fundamental marketing element. In the digital marketing/e-commerce context, there are two universal phenomena: desire to micro-segment and customize, and the adverse reaction upon unfair perception of price. A third related question is how should firms consider price increases and decreases? Specifically, this paper aims to address the following three research and practice questions: What are the theoretical underpinnings of perception of fairness/unfairness in pricing, and what are the findings? What are the theoretical underpinnings of response to price increases and decreases? What should be online pricing strategy, consistent with the findings on (un)fairness perception of pricing and response to price increases and decreases?

The present approach is integrative review and critical analyses, and synthesis. The review dates back to 1960s, and is inter-disciplinary, including apposite findings in behavioral science, economics, marketing and operations management/research. The authors search for insights with significant empirical support to address these questions.

Perception of unfair price impacts consumer choice, probability of purchase, intent to buy and attitude to product/service/firm adversely. Consumers react differently to perceived unfair and fair prices. Consumers react more strongly and negatively to perceived unfair prices (compared to prices perceived to be fair) in their intent to buy and other related metrics. Consumers react differently to price increases and price decreases relative to the reference price. Consumers react more strongly to price increases than to price decreases. There is substantial heterogeneity in the magnitude of loss-aversion effect, depending on the product/service category and estimation methods.

The authors review and discuss potential viable pricing strategies. Based on the generalizable findings, this study provides actionable insights to managers for pricing in digital marketing context. Also, the authors provide useful directions for future research.

This paper aims to examine the effect of targeted promotions on perceptions of fairness from the perspective of consumers who are not targeted.

A scenario-based approach is used. Three studies manipulating promotion selectivity and various bases for promotion selection were conducted. A total of 403 people participated in the studies.

Results showed that these consumers consider targeted promotions unfair, and the primary reason is centered more on damage to relational identity than the economics of reduced perceived value. The effect is moderated by how the targeted promotion is delivered (buyer-discovered vs seller-delivered) and different basis for selection.

As companies adopting the practice of dynamic pricing such as targeted promotion, it is important to manage relationship with their consumers. Framing targeted promotions that reduce the salience of seller’s role and provide explanations that not attributed to buyer-seller relationship are important in reducing the potential damage of targeted promotion on relational identity.

Existing research on perceptions of price fairness has focused on the role of perceived value. This research tested the relative effect of perceived value, relational identity and personal identity in the context of targeted promotion and identified relational identity as the major mechanism.

Promotional cues related to notions of fair prices or pricing designed to fit consumers’ needs are prevalent for many service offers. The purpose of this paper is to investigate how both customers’ price fairness and idiosyncratic fit perceptions shape their tariff evaluations.

Two experimental studies involving different tariff types and service contexts test the complex interplay of customers’ perceived price fairness and idiosyncratic fit with customer and context characteristics on their tariff evaluations.

Customers judge tariffs drawing on both the perceived price fairness and idiosyncratic fit, driven by the perceived price level of the tariff and the perceived pricing transparency of the firm. Customers’ service usage and consumption goals moderate these effects: heavy users and hedonic consumers indicate lower price sensitivity while focusing more on their transparency perception. The role of perceived price fairness and idiosyncratic fit for tariff choice depends on the tariff/service context; idiosyncratic fit is important when it is incidental (e.g. flat rates) rather than intentional (i.e. customized tariffs) and when customers lack the expertise or confidence to evaluate price fairness such as in the case of relatively new services.

Prior studies focused on either price fairness or idiosyncratic fit and thus cannot fully explain the complex interplay between both in the context of tariff choice. This paper explicates the conditions that affect the relative importance of both concepts and under which incidental offers are better received than premeditated ones.